Jazz passes my overall performance test however, and earns a current momentum grade A+.


Here is where valuation comes into play.

Data from Best Stocks Now App

I see a stock that is trading at 19 times forward earnings. Jazz is expected to continue to grow those earnings by about 19% per year over the next five years. That makes for a very reasonable price-to-earnings growth ratio of just 0.98.

When I do the math, I come up with a five-year target price of $300 on the stock. Jazz is currently only trading at $152. In other words, I see a stock that has 98% upside potential.

Will Jazz ever get there? I don't know. But if Jazz can continue to execute, I'll stay along for the ride.

Stock Chart

Lastly, I see a chart that's still hitting new highs. As far as I'm concerned, all systems are still go on Jazz.

Out of 3,813 stocks in my Best Stocks Now app database, Jazz comes in fifth. It's a stock that I own at Gunderson Capital Management in my aggressive portfolios accounts.

Data from Best Stocks Now App

At the time of publication, the author held JAZZ in his managed portfolios.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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